By Chisomo Phiri
In its mandate to regulate the energy Sector in Malawi in a fair, transparent, efficient and cost-effective manner for the benefit of consumers and operators, the Malawi Energy Regulatory Authority ( Mera) has outlined the key factors that affect the landed costs of petroleum products.
In a statement made available to this publication Mera says among others, these key factors include the prices of refined petroleum products on the international market and the exchange rate of the Malawi Kwacha against major currencies.
The energy body says since the determination of the ruling pump prices in March, 2021, the landed costs of pertrol, Diesel and Paraffin have increased by 20.44%, 12.03% and 12. 23% respectively while the the landed osts of Jet A1 ( Aviation fuel) have reduced by an average of 1. 38% as compared to the landed costs noted in July, 2021, when the Jet-A-1 prices were last reviewed.
” As of September 7, 2021, the Price Stabilisation Fund balances for Petrol, Diesel, and Paraffin averaged K1.5 billion against the recommended minimum K5 billion.
” Under the Automatic Pricing Mechanism, which was adopted in 2012, prices are adjusted when the change in the landed cost is beyond the £5% trigger band”, reads part of the statement.
However, due to this , the Mera board says will consider the changes in the landed costs and other economic factors to establish appropriate prices of petroleum products and that the outcomes of the energy prices review will be communicated in due course.
